California Form 541-A - Trust Accumulation Of Charitable Amounts - 2015 Page 3

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2015 Instructions for Form 541-A
Trust Accumulation of Charitable Amounts
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and to the California Revenue and Taxation Code (R&TC) .
General Information
A split-interest trust is a trust which:
Preparer’s Use Only” section of the tax return .
It does not apply to the firm, if any, shown in
• Is not exempt from taxation under
In general, for taxable years beginning on or
that section .
R&TC Section 23701d .
after January 1, 2015, California law conforms
• Has some of the unexpired interests devoted
If the “Yes” box is checked, the fiduciary is
to the Internal Revenue Code (IRC) as of
to one or more charitable purposes as
authorizing the FTB to call the paid preparer
January 1, 2015 . However, there are continuing
described in IRC Section 170(c) .
to answer any questions that may arise during
differences between California and federal
• Has amounts in trust for which a charitable
the processing of its tax return . The fiduciary is
law . When California conforms to federal tax
contributions deduction was allowed under
also authorizing the paid preparer to:
law changes, we do not always adopt all of
the R&TC . Pooled income funds, IRC
the changes made at the federal level . For
• Give the FTB any information that is missing
Section 642(c)(5); charitable remainder
from the tax return .
more information, go to ftb.ca.gov and search
annuity trusts, IRC Section 664(d)(1); and
• Call the FTB for information about the
for conformity . Additional information can
remainder unitrusts, IRC Section 664(d)(2)
be found in FTB Pub . 1001, Supplemental
processing of the tax return or the status of
are split-interest trusts .
Guidelines to California Adjustments, the
any related refund or payments .
Simple trusts which received a letter from the
• Respond to certain FTB notices about math
instructions for California Schedule CA (540 or
Franchise Tax Board (FTB) granting exemption
errors, offsets, and tax return preparation .
540NR), and the Business Entity tax booklets .
from tax under R&TC Section 23701d
The instructions provided with California tax
The fiduciary is not authorizing the paid
are considered to be corporations for tax
preparer to receive any refund check, bind
forms are a summary of California tax law
purposes . The trust may be required to file
the trust to anything (including any additional
and are only intended to aid taxpayers in
Form 199, California Exempt Organization
preparing their state income tax returns . We
tax liability), or otherwise represent the trust
Annual Information Return .
include information that is most useful to the
before the FTB .
Nonexempt charitable trusts, described in IRC
greatest number of taxpayers in the limited
The authorization will automatically end no
Section 4947(a)(1), must file Form 199 .
space available . It is not possible to include
later than the due date (without regard to
all requirements of the California Revenue
extensions) for filing the trust’s 2016 tax
C When to File
and Taxation Code (R&TC) in the tax booklets .
return . If the trust wants to expand the paid
Taxpayers should not consider the tax booklets
File Form 541-A on or before April 18, 2016 .
preparer’s authorization, go to ftb.ca.gov and
as authoritative law .
If you need additional time to file, California
search for poa . If the trust wants to revoke the
grants an automatic six-month extension . If
authorization before it ends, notify the FTB in
A Purpose
the tax return is filed by October 17, 2016, the
writing or call 800 .852 .5711 .
Use Form 541-A, Trust Accumulation of
extension will apply .
Charitable Amounts, to report a charitable or
If the due date falls on a weekend or holiday,
Specific Instructions
other deduction under IRC Section 642(c) .
the deadline to file and pay without penalty is
Additional information.
Split-interest trusts described in IRC
extended to the next business day .
Section 4947(a)(2) do not file Form 541-A .
Use the Additional Information field for
Due to the Emancipation Day holiday on
Form 541-B, Charitable Remainder and Pooled
“In-Care-Of” name and other supplemental
April 16, 2016, tax returns filed and payments
address information only .
Income Trusts, meets R&TC Section 18635
mailed or submitted on April 18, 2016, will be
filing requirements for split-interest trusts . For
considered timely .
Foreign address.
more information on split-interest trusts, get
If the estate or trust has a foreign address,
D Where to File
Form 541-B .
follow the country’s practice for entering the
B Who Must File
Mail Form 541-A to:
city, county, province, state, country, and
postal code, as applicable, in the appropriate
FRANCHISE TAX BOARD
A trustee must file a calendar year Form 541-A
boxes . Do not abbreviate the country name .
PO BOX 942840
for a trust that claims a charitable or other
SACRAMENTO CA 94240-0001
Part II Distributions of Income
deduction under IRC Section 642(c) . Do not
Do not attach to Form 541 .
file Form 541-A if the following exceptions
Set Aside in Prior Taxable Years
apply:
E Internet Access
for Charitable Purposes
• The trustee is required by the terms of the
You can download, view, and print California
and
governing instrument and applicable local
tax forms and publications at ftb.ca.gov .
Part III Distributions of
law to currently distribute all of the income .
F Signatures
• The trust is a charitable trust described in
Principal for Charitable
IRC Section 4947(a)(1) .
Purposes
The fiduciary or officer representing the
• The trust is a split-interest trust described in
fiduciary must sign Form 541-A . Any person
IRC Section 4947(a)(2) .
Attach a statement describing in detail the
preparing the fiduciary’s tax return for
A charitable trust is a trust which:
purpose for which charitable disbursements
compensation, who is not a regular full-time
were made from income set aside in prior
• Is not exempt from taxation under R&TC
employee of the fiduciary, must also sign
taxable years and amounts which were paid
Section 23701d .
Form 541-A .
out of principal for charitable purposes .
• Has all the unexpired interests devoted
Third party designee
to charitable purposes described in IRC
Examples of appropriate descriptions are:
If the fiduciary wants to allow the FTB to
Section 170(c) .
• Payments for nursing service .
discuss its 2015 tax return with the paid
• Had a charitable contribution deduction
• Laboratory construction .
preparer who signed it, check the “Yes” box
allowed for all the unexpired interests under
• Fellowships .
in the signature area of the tax return . This
the R&TC .
• Assistance to indigent families (not simply
authorization applies only to the individual
charitable, educational, religious, or scientific) .
whose signature appears in the “Paid
Form 541-A Instructions 2015 Page 1

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